What Should an eBook Cost?

2010-01-08T14:36:00.005-05:00

I've been hearing from people that they think e-books cost too much. Someone actually said to me, "Why should I have to pay six dollars for a book when there is no paper? They should just sell the books for ninety-nine cents like iTunes sells music." The author in me wanted to punch him in the nose.

First of all, ninety-nine cents for a song is not cheap. It's roughly the same price we paid for songs when we bought them on compact discs. Books, however, should not be sold by the chapter. We are always going to want the 'whole album' when we buy books.

Second of all, the cost of a book is not found in the paper. (Heck, you can buy a ream of paper at Office Max for a couple of dollars, and I'm sure publishers buy in bulk.)

Money Magazine did a breakdown of the cost of a typical book. They used John Grisham's novel, The Associate:

Hardcover list price $27.95

$4.19 to the author. (He pays his agent, publicist, etc…)
$3.55 to pre-production. (editors, graphic designers, proofreaders, etc…)
$2.83 to printing. (ink, glue, paper, etc…)
$2.00 to marketing. (book tour, ads, printing/shipping pre-release to journalists, etc…)
$2.80 to wholesalers. (distribution to retailers)
$12.58 to retailers. (This is not all profit; they have overhead and personnel costs.)

From this we can see that it costs $15.37 to make this book. An e-book won't require printing or wholesaler costs and will only cost $9.74 to make. IT'S ONLY SIX DOLLARS CHEAPER TO MAKE AN E-BOOK!

Of course the retailer is entitled to a reasonable amount of profit. (Barnes and Noble stores routinely sell new release hard cover books for 40% off the list price. In this case bringing their cut from $12.58 per book down to $1.40; hardly price gouging.) Let's guess that their overhead eats away half of that, so we could expect that savings to be passed along to the e-book purchaser, giving only seventy cents profit per e-book sold.

So, allowing for a very slight amount of profit, we should see the e-book price at about $10.44.

Now, this is a specific example. Costs are going to vary based on the size of the book, the popularity of the author, and other factors. Also not included in this analysis is the cost of creating the digital version of the book, (although this is probably only a minimal cost.) And if a retailer wanted to increase their profit margin a bit by raising prices slightly it wouldn't be evil.

Once a book is no longer a new release, the cost of the e-book should fluctuate based solely on demand. The phenomenon of 'clearance' prices doesn't apply to digital media. With retailers already slashing their cut to be competitive there is not a ton of room for discounting.

So let's give e-book publishers a break. Electronic publishing is fantastic and more convenient, and overall, cheaper. Count your blessings and keep in mind that profitable publishers will bring you more books in the future.

To Be a Writer or . . .

2009-12-23T13:12:00.004-05:00

I know it is a bit early to be tossing out New Year's resolutions, but I'm feeling convicted now. What exactly is it that keeps me from sitting down and actually writing my novel? Certainly it's not a lack of time or opportunity, nor does it stem from lack of support from my lovely bride or children. When I lie awake at night, it is more often than not because I am drawn into this fantasy world that seems so real and tangible to me that it is more like recalling memories than creating fiction. The truth is, I love this story. And perhaps it is that love that keeps me from writing it - because while it is all shiny and perfect now, I know that once I put pen to paper I can do nothing but scar and tarnish it. But one cannot bring a beautiful child into the world by keeping her in the warm protective confines of the womb. Risk must be taken, and the reality of growing up will scar and tarnish even when the best care is taken.

So, here is my sole resolution: I will finish my novel by December 23, 2010 - at least a first draft - or I will stop telling people I am a writer.

writing.ebdean.com

What Should an eBook Cost?

To Be a Writer or . . .